How Many One-time Buyers Do You Have?

Too often in our acquisition efforts we get caught up in the excitement of initial response rates and the rolling out of successful tests. While getting that first order always is exciting, we must be careful not to judge any acquisition program by first order alone. Too many of us have customer files that are 40 percent, 50 percent or even 60 percent one-time buyers. Even if you’re lucky enough to prospect at a marketing gross profit (incremental gross margins exceeds marketing costs), few, if any, businesses make money on the first order.